Commonwealth Numbered Acts

SALES TAX LAWS AMENDMENT ACT (No. 1) 1996 No. 68, 1996 - SCHEDULE 1

Schedule 1 - Amendments Sales Tax Assessment Act 1992 1 Section 5 (definition
of always-exempt person) Omit "the person;", substitute: the person. For the
purposes of this definition, it is to be assumed that the following provisions
of Schedule 1 to the Exemptions and Classifications Act had not been enacted:

   (a)  subitem 64(2);

   (b)  subitem 126(2A);

   (c)  subitem 126A(2);

   (d)  subitem 127(1A);

   (e)  subitem 128(2);

   (f)  subitem 130(2). 2 Section 5 Insert: goods for use as part of a car
        remuneration package has the meaning given by section 15E. 3 After
        section 15D Insert: 15E Goods for use as part of a car remuneration
        package

(1) This section sets out the 2 circumstances in which goods are taken to be
used, or for use, by a person as part of a car remuneration package.
Circumstance 1 - cars

(2) Goods are used, or are for use, by a person as part of a car remuneration
package if:

   (a)  the goods are a car; and

   (b)  the person uses, or proposes to use, the car, to any extent, to
        provide car benefits to any or all of the following:

        (i)    an employee of the person;

        (ii)   an associate of an employee referred to in subparagraph (i);

        (iii)  an employee of an associate of the person;

        (iv)   an associate of an employee referred to in subparagraph (iii).
               Circumstance 2 - parts or accessories for cars

(3) Goods are for use by a person as part of a car remuneration package if:

   (a)  the goods are parts or accessories for a car; and

   (b)  the car is used, or is for use, by the person as part of a car
        remuneration package; and

   (c)  an assessable dealing with the car occurred, or will occur, after the
        commencement of this section. Modifications of fringe benefits tax
        rules

(4) For the purposes of this section, the following assumptions are to be made
about the Fringe Benefits Tax Assessment Act 1986:

   (a)  it is to be assumed that the application of a car to a private use, or
        the availability of a car for private use, does not give rise to a car
        benefit if the application or availability, as the case may be:

        (i)    related exclusively to work-related travel of the employee
               concerned; or

        (ii)   was minor, infrequent and irregular;

   (b)  it is to be assumed that motor cycles and similar vehicles were not
        excluded from the definition of car in subsection 136(1) of that Act;

   (c)  it is to be assumed that paragraphs (d) and (e) of the definition of
        employer in subsection 136(1) of that Act had not been enacted. Note
        1: Paragraph (d) excludes the Commonwealth from the definition of
        employer. Note 2: Paragraph (e) excludes an authority of the
        Commonwealth that cannot, by a law of the Commonwealth, be made liable
        to taxation by the Commonwealth, from the definition of employer.
        Members of local governing bodies not excluded

(5) For the purposes of this section, the meaning of an expression used in the
Fringe Benefits Tax Assessment Act 1986 is to be determined as if paragraph
(pa) of the definition of salary or wages in subsection 221A(1) of the
Income Tax Assessment Act 1936 had not been enacted. Note: Paragraph (pa)
excludes remuneration or allowances paid to members of certain local governing
bodies from the definition of salary or wages. Definitions

(6) In this section: application to private use, in relation to a car, has the
same meaning as in the Fringe Benefits Tax Assessment Act 1986. associate has
the same meaning as in the Fringe Benefits Tax  Assessment Act 1986 .
availability for private use, in relation to a car, has the same meaning as in
the Fringe Benefits Tax Assessment Act 1986. car has the same meaning as in
the Fringe Benefits Tax Assessment Act  1986 . car benefit has the same
meaning as in the Fringe Benefits Tax  Assessment Act 1986 . employee has the
same meaning as in the Fringe Benefits Tax Assessment  Act 1986 . work-related
travel has the same meaning as in the Fringe Benefits Tax  Assessment Act 1986
.

4 After section 129 Insert: 129A Notional application of sales tax to the
Commonwealth

(1) The object of this section is to provide for the notional application of
sales tax to the Commonwealth.

(2) The Commonwealth is not liable to pay sales tax.

(3) The sales tax law (other than a law that imposes sales tax) applies in all
other respects as if the Commonwealth were liable to pay sales tax. This rule
has effect subject to any applicable exemption Items.

(4) Subsection 14ZX(4), section 14ZZ and Divisions 4 and 5 of Part IVC of the
Taxation Administration Act 1953 do not apply to the Commonwealth.

(5) The Minister for Finance may give such written directions as are necessary
or convenient to be given for carrying out or giving effect to this section
and, in particular, may give directions in relation to the transfer of money
within the Public Account.

(6) Directions under subsection (5) have effect, and must be complied with,
despite any other law of the Commonwealth.

(7) This section does not make the Commonwealth liable to pay a penalty or to
be prosecuted for an offence.

(8) A reference in this section to the Commonwealth includes a reference to an
authority of the Commonwealth that cannot, by a law of the Commonwealth, be
made liable to taxation by the Commonwealth. 5 Subsection 130(2) After
"apply", insert "in relation to goods (other than goods for use by the
authority as part of a car remuneration package)". 6 After subsection 130(2)
Insert:

(2A) The cancellation does not apply in relation to goods for use by the
authority as part of a car remuneration package if the provision of the other
Act:

   (a)  is enacted after 13 May 1987; and

   (b)  refers specifically to sales tax in relation to goods for use by the
        authority as part of a car remuneration package. 7 Application The
        amendments of the Sales Tax Assessment Act 1992 made by this Schedule
        apply to dealings with goods after the commencement of this item.
        Sales Tax (Exemptions and Classifications) Act 1992 8 At the end of
        Item 64 of Schedule 1 Add:

(2) This Item does not cover goods for use by the authority as part of a car
remuneration package. 9 After subitem 126(2) of Schedule 1 Insert:

(2A) This Item does not cover goods for use by an Australian government, or by
an authority, as part of a car remuneration package. 10 At the end of Item
126A of Schedule 1 Add:

(2) This Item does not cover goods for use by the body as part of a car
remuneration package. 11 After subitem 127(1) of Schedule 1 Insert:

(1A) Subitem (1) does not cover goods for use by the body as part of a car
remuneration package. 12 At the end of Item 128 of Schedule 1 Add:

(2) This Item does not cover goods for use by the library, museum or art
gallery as part of a car remuneration package. 13 At the end of Item 130 of
Schedule 1 Add:

(2) This Item does not cover goods for use by:

   (a)  the Aboriginal and Torres Strait Islander Commission; or

   (b)  the Torres Strait Regional Authority; or

   (c)  the Reserve Bank of Australia; as part of a car remuneration package.
        14 Application The amendments of the
        Sales Tax (Exemptions and Classifications) Act  1992 made by this
        Schedule apply to dealings with goods after the commencement of this
        item. [Minister's second reading speech made in - House of
        Representatives on 27 June 1996 Senate on 9 September 1996]